Yahoo Finance VF Corp, Verizon earnings — What to know in markets Friday
Vans parent company VF Corp (VFC) and telecom giant Verizon (VZ) are set to report quarterly results ahead of the opening bell on Friday.
VF Corp, the parent company of brands like Vans, The North Face and Timberland, has seen strong performance this year. Shares surged more than 30% and have outpaced the broader market’s 21% gain in the same time period. Analysts polled by Bloomberg expect VF Corp to report adjusted earnings of $1.31 per share on $3.42 billion of revenue during its second quarter.
One thing that analysts are watching for when VF Corp reports earnings is how the company fared during the later-than-normal start to back-to-school season this year. The late start likely led to muted demand for the retailer, specifically its Vans brand. VF Corp’s Vans and The North Face brands have been the strongest performers over recent quarters.
Second-quarter financial results follow a blowout first quarter for VF Corp. The stock surged and hit all-time highs after a beat and raise quarter for the company. During the first quarter, both Vans and The North Face grew by double digits internationally and in China. Margins also expanded by 120 basis points during VF Corp’s Q1. The North Face sales grew 24% in the U.S. Following first-quarter results, CEO Steven Rendle said that the American consumer was pretty healthy and said that the company had a lot of confidence in the higher fiscal-year targets.
Meanwhile, Yahoo Finance’s parent company, Verizon, will also be releasing third-quarter results. Verizon’s wireless revenue is expected to have grown 2% during the most recent quarter. Analysts are expecting that postpaid average revenue per user rose 0.3% during Q3, even despite the price cuts on unlimited plans. Verizon is expected to report adjusted earnings of $1.24 per share on $32.75 billion, according to analysts polled by Bloomberg. 5G won’t be factored into Verizon’s sales growth for a while, but the conference call is likely to focus on 5G.
Verizon shares are up a modest 12% this year and have underperformed its peers. The Communications Services sector ETF, XLC, rose 21% in the same time period.
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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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